Trump Makes Bombshell Mortgage Move
President Donald Trump announced Thursday that his administration has directed the purchase of $200 billion in mortgage-backed securities, a move he says is designed to lower mortgage rates and ease housing costs for American homeowners.
In a statement posted to Truth Social, Trump said the initiative is intended to bring down interest rates, reduce monthly mortgage payments, and improve affordability in the housing market, which has remained tight nationwide.
How Mortgage Bond Purchases Work
Mortgage-backed securities are bonds supported by pools of home loans. Government-sponsored entities such as Fannie Mae and Freddie Mac regularly buy mortgages from lenders, bundle them into securities, and sell them to investors.
This process allows lenders to recycle capital, making it easier to issue new home loans and potentially put downward pressure on mortgage rates.
Fannie Mae and Freddie Mac Expected to Execute Plan
While Trump did not initially specify which agencies would carry out the bond purchases, Bill Pulte, director of the Federal Housing Finance Agency, indicated that Fannie Mae and Freddie Mac would be involved.
“We are on it,” Pulte wrote on X, responding to Trump’s announcement. “Thanks to President Trump, Fannie and Freddie will be executing.”
The White House has not yet released additional details on the timing or pace of the purchases.
Housing Costs Remain a Key Economic Concern
Housing affordability and interest rates continue to be top concerns for many Americans, particularly retirees and families on fixed incomes. Trump has repeatedly said that restoring affordability is a priority of his economic agenda.
In Thursday’s announcement, the president again criticized policies of the previous administration, arguing that his approach is focused on stabilizing markets, encouraging lending, and reducing financial pressure on homeowners.
Supporters say the mortgage bond initiative reflects a broader effort to use existing federal tools to support the housing market without raising taxes, while critics are awaiting more details on implementation.
For now, the administration says the goal is straightforward: lower borrowing costs, increased housing access, and a more stable real estate market.
